Ontario passes Construction Lien Amendment Act, 2017

December 5, 2017 - “This legislation could not have been introduced at a better time [...]” said Ron Johnson, director of Prompt Payment Ontario, after it was announced the province passed The Construction Lien Amendment Act, 2017 (a.k.a. Bill 142).

“This is the biggest change to our construction laws in over 34 years,” said Yasir Naqvi, Ontario’s Attorney General. “These changes will have a real impact on people’s lives, giving workers assurance they will be paid on time and in full, and help to ensure disputes are resolved quickly.”

The act includes new prompt payment rules to ensure construction businesses and workers get paid in a timely manner. The act also modernizes the lien and holdback process, helps protect creditors and sets out a new adjudication process to resolve payment disputes faster.

“These changes, including promptness of payment and dispute resolution through adjudication will go a long way to modernizing the construction industry across Ontario,” said Bruce Reynolds and Sharon Vogel of BLG LLP.

“We would like to thank the government for taking this issue seriously, and hope that we will see the immediate proclamation of this important piece of legislation,” Johnson added. “We hope that this ground-breaking piece of legislation will set the stage for change across the country.”